The office sector in Valencia has closed 2022 with a contracted surface area of 41,600 sqm, compared to the 44,000 sqm contracted in 2021, according to CBRE data. However, contracting is being severely limited by the availability of space, the rate of which is at an all-time low in 2022 (below 5% of the total stock).
According to the CBRE report, there is a shortage of supply in the main office areas of Valencia, especially in the Central Area, one of the most in-demand.
In 2022, there has been a notable increase in operations of more than 500 sqm, which already account for 50% of the contracted surface area. The trend in demand is towards larger areas, equipped with state-of-the-art facilities in search of employee wellbeing.
In terms of rents, maximum and minimum rents are stable, although the average rent is up one point to 10.5/sqm/month, according to CBRE. The trend is towards a polarisation of rents, i.e. the best positioned buildings will continue to have upside in rents, with the maximum now being €17/sqm/month, while those that do not meet the minimum requirements will see their rents fall to minimum rents, currently €8/sqm/month.
The trend in demand is towards larger areas, equipped with state-of-the-art facilities that seek the wellbeing of employees and attracting talent.
The growing market share that flexible spaces are gaining in the city is also noteworthy. In 2022, 1,115 jobs were transacted, representing an average occupancy rate of 91%. This situation is in line with the limited supply of traditional office space, so it continues to be a challenge to find available space in Valencia.
In terms of investment, the office market in Valencia has concentrated a volume of 37 million euros in 2022 and there continues to be a high appetite for investment, again limited by the scarcity of opportunities. A total investment volume of 910 million euros has been registered in the Valencian Community for all uses, a record figure in the historical series.
According to Belén Patiño, office director at CBRE Valencia, "the office market in Valencia is marked by low availability, which is limiting the levels of hiring. It is necessary to increase the office stock and put on the market a product adapted to the new demands of companies and employees, who are looking for locations that meet sustainability, efficiency and digitalisation criteria".